Wells Fargo settles investment lawsuit for $62.5 million

Wells Fargo has agreed to pay $62.5 million to settle a class action lawsuit stemming from its securities lending program.

A group of investors, including the city of Farmington Hills' employee retirement system, sued the San Francisco-based bank in 2010, claiming Wells Fargo mischaracterized a high-risk investment program as conservative and safe. The investors claimed they "suffered significant losses" as a result.

A hearing before U.S. District Judge Donovan Frank is scheduled for June 5 in St. Paul. Frank will decide whether to grant the settlement agreement preliminary approval.

"We are pleased to reach a settlement of this lawsuit, for Wells Fargo and our clients that we served for many years through our securities lending program," a company statement said. "Wells Fargo was focused at all times on serving our clients' interests and we worked very hard and responsibly to achieve the best results for all of the participants in the program during very difficult economic conditions."

Wells Fargo will discontinue its securities lending program in 2015, according to court documents.